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Main St. & Main, Inc. (MAIN) Message Board

  • thewind77411 thewind77411 Oct 2, 2012 3:52 PM Flag

    Dividend Is Getting Smaller

    With the price above 30 MAIN's dividend is now below six per cent, making it less competitive with other choices. Will there be a pull-back soon?

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    • Agree the dividend yield is getting quite low, but maybe you're being too focused on just the dividend. Name another BDC that has given you anywhere near the share price appreciation as MAIN this year. Or name me another BDC that has a better total return so far in 2012.
      .
      It's not like MAIN's dividend has been stagnant. They have had three dividend increases in 2012 and are paying 11% more in dividends than when the year started. Plus, MAIN will be paying a special dividend at the end of the year. The amount hasn't been officially announced yet, but in the last CC they indicated it would be at least $0.25.
      .
      Also, based on MAIN's NII vs dividend payout, it's a safe bet there will be more dividend increases next year.
      .
      I wouldn't fall for the misconception that a higher yielding BDC is a better investment. Compare PSEC or FSC or any of the higher yielding BDC's to MAIN's total return over any time frame and MAIN is the better investment by far. The only other BDC that is comparable is TCAP. The rest are woefully far behind these two.

      RC

    • Agree the dividend yield is getting quite low, but maybe you're being too focused on just the dividend. Name another BDC that has given you anywhere near the share price appreciation as MAIN this year. Or name me another BDC that has a better total return so far in 2012.
      .
      It's not like MAIN's dividend has been stagnant. They have had three dividend increases in 2012 and are paying 11% more in dividends than when the year started. Plus, MAIN will be paying a special dividend at the end of the year. The amount hasn't been officially announced yet, but in the last CC they indicated it would be at least $0.25.
      .
      Also, based on MAIN's NII vs dividend payout, it's a safe bet there will be more dividend increases next year.
      .
      I wouldn't fall for the misconception that a higher yielding BDC is a better investment. Compare PSEC or FSC or any of the higher yielding BDC's to MAIN's total return over any time frame and MAIN is the better investment by far. The only other BDC that is comparable is TCAP. The rest are woefully far behind these two.

      RC

      • 1 Reply to rc5717
      • I agree about the dividend. About a year ago I sold all of my position in MAIN. I usually follow the strategy of selling stocks that run up so high that yields fall noticably and use the funds to buy other more undervalued stocks of fundamentally attractive companies in out of favor sectors.. Within a few weeks they anounced a dividend increase and I missed a big move. I had to wait months to get another entry point. That being, said the MACD is a technical indicator that's pretty popular with institutional investors and it's starting to look just a bit "troubling" for MAIN. This may be more due to the way the whole market is headed than just this stock.

 
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